Located in Austria, Diamond Air has declared that it is looking for a local partner to assist it in getting a license to build aircraft in Nigeria. The business claimed that its goal is to have a foothold in the biggest economy in Africa. The company, which operates more than 6,000 aircrafts globally, did not have a defined strategy for Africa up until this point. Diamond Aircraft had previously made plans to travel to Africa to look into investment prospects before the outbreak started. Representatives from the company are in Africa to evaluate the market, meet with possible clients and business partners, and look for a local partner to build their aircraft, among other things. Bin Chen, the chairman of Diamond Aircraft, revealed this over the weekend while visiting Hadi Sirika, the aviation minister, with his team.
He declared that they are eager to learn more about the African market’s potential and to connect with local partners that can support us in building a strong presence in Nigeria. Chen also mentioned that Diamond Aircraft is searching for a local partner that may aid them in getting a license to manufacture their aircraft in Nigeria. The business is looking for a partner who values and is committed to quality and safety. They are seeking a partner that can assist them in introducing their aircraft to the Nigerian market and guarantee that they adhere to the highest quality requirements. They also think Nigeria offers a wonderful opportunity, which they are excited to investigate.
A local partner that would help them get license would be needed.
Chen also mentioned that Diamond Aircraft is searching for a local partner that may aid them in getting a license to manufacture their aircraft in Nigeria. The business is looking for a partner who values and is committed to quality and safety. In response, the minister of aviation stated that a new maintenance, repair, and overhaul facility had just been established through partnerships in an effort to grow the aviation industry in Nigeria. The MRO is one of many in the nation and is slated to offer maintenance services for a variety of aircraft.
With over 14,000 aircraft engineers and technicians in the nation, Nigeria is well-equipped to meet the maintenance requirements of the aviation industry, according to the National Institute of Aviation Technology in Zaria, which also developed an MRO under the national hangar project. According to the Minister of Finance, Zainab Ahmed, who listed some of the benefits the company would receive from investing in Nigeria, the government has announced significant tax policies and incentives in an effort to entice new businesses to locate there. She also noted that a double taxation agreement is in place to prevent businesses from being taxed twice on the same income.
Investors would be assured that the assets are protected.
In addition, she added, there is now a pioneers status available for three years that is renewable and provides a number of incentives, including the elimination of import duties on machinery and aviation parts. Ahmed further pointed out that the Nigerian aircraft industry is exempt from VAT and that there are no customs duties imposed on imported items, emphasizing that these policies were put in place to assist local firms and make the nation a desirable location for foreign investments. On the financial front, they support the establishment of new companies, have stringent tax laws in place, and have signed a double taxation agreement to shield them from further taxes. The aviation sector is likewise exempt from VAT in Nigeria. No customs fees while importing.
Abubakar Malami, the Attorney General of the Federation, who also spoke, asserted that Nigeria had strengthened its commitment to safeguarding both domestic and foreign investors’ investments, noting that the nation’s constitution now contains clauses that ensure the safety and security of investments made in the nation. He continued by saying that this action is anticipated to strengthen Nigeria’s economy and draw in more foreign investments. He also added that investors could do business in Nigeria with confidence because they would be assured that their investments would be safeguarded from any potential negative effects.
The African Continental Free Trade Area gives a significant potential.
Otunba Adeniyi Adebayo, Minister of Industry, Trade, and Investment, stated that companies wishing to expand to Africa need not worry about a lack of demand because the African Continental Free Trade Area gives a significant potential. The minister added that Nigeria, with a population of 200–250 million, is the largest individual market on the continent, and that opening up access to it would also open up access to the larger African market. He also said that any product made in Nigeria would be eligible for duty-free sales in other African nations, making it advantageous for companies to establish operations there.
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